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Non-cooperative pollution control in an inter-jurisdictional setting

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Listed:
  • Boadway, Robin
  • Song, Zhen
  • Tremblay, Jean-François

Abstract

This paper examines various circumstances under which decentralized pollution policies can be efficient both in federal settings and in multi-region settings with labor mobility. We consider a model in which pollution control policies are set by regional governments non-cooperatively and pollution damages are borne by the residents of all regions. We characterize the efficiency of pollution policies, and of population allocation among regions, in a variety of scenarios, including when pollution policies are enacted before interregional transfers are determined by the federal government and before migration occurs; when migration decisions are taken before policy decisions; in the absence of a central government if regional governments can make voluntary interregional transfers; when decisions over pollution control policies are followed by voluntary contributions by regions to a national public good; when regions can commit to matching the abatement efforts of each other; and when regions can commit to specific levels of abatement contingent on the emissions of other regions not exceeding some maximum level.

Suggested Citation

  • Boadway, Robin & Song, Zhen & Tremblay, Jean-François, 2013. "Non-cooperative pollution control in an inter-jurisdictional setting," Regional Science and Urban Economics, Elsevier, vol. 43(5), pages 783-796.
  • Handle: RePEc:eee:regeco:v:43:y:2013:i:5:p:783-796
    DOI: 10.1016/j.regsciurbeco.2013.07.003
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    Cited by:

    1. Emilson Caputo Delfino Silva & Vander Mendes Lucas, 2016. "Common labor market, attachment and spillovers in a large metropolis," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 23(4), pages 693-715, August.
    2. Schindler, Mirjam & Caruso, Geoffrey & Picard, Pierre, 2017. "Equilibrium and first-best city with endogenous exposure to local air pollution from traffic," Regional Science and Urban Economics, Elsevier, vol. 62(C), pages 12-23.
    3. Marcelo Arbex & Christian Trudeau, 2015. "Heterogeneous preferences, atmospheric externalities, and environmental taxation," Working Papers 1503, University of Windsor, Department of Economics, revised Jun 2016.
    4. Eichner, Thomas & Pethig, Rüdiger, 2014. "Self-enforcing environmental agreements and capital mobility," Regional Science and Urban Economics, Elsevier, vol. 48(C), pages 120-132.
    5. Silva, Emilson Caputo Delfino, 2014. "Selective decentralized leadership," Journal of Urban Economics, Elsevier, vol. 83(C), pages 1-5.
    6. repec:kap:itaxpf:v:24:y:2017:i:5:d:10.1007_s10797-016-9436-x is not listed on IDEAS
    7. repec:eee:ecolet:v:157:y:2017:i:c:p:79-82 is not listed on IDEAS
    8. Arbex, Marcelo & Behringer, Stefan & Trudeau, Christian, 2017. "Optimal tax policy under heterogeneous environmental preferences," Economics Letters, Elsevier, vol. 157(C), pages 79-82.

    More about this item

    Keywords

    Decentralized pollution control; Migration; Interregional transfers;

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H79 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other

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